5 key strategies for customer retention

Neel Desai Jan 12 2022

We wanted to kick the new year off on the right foot, so this week on Retention Talk we’re going over the five key components of customer retention that we've learned from the season so far. We’ll be back next week with a brand new episode with Mike Lackman of Trade Coffee.

 

Listen now 🎧

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Show takeaways

Key points discussed in the episode

 

1. Having an outcome-focused product roadmap

First we look back at our first episode with Oscar Carlsson of Framer. His advice was to have an outcome-focused product roadmap.

Rather than worry about different features and capabilities, Framer aligned on segmenting their buyer personas and the outcomes they were working toward.

This led to a laser focus for the entire company to radically shift—not only the distribution channel, but their product itself.

 

2. Breaking down customer cohorts

Next we look at our episode with the crew over at Knowledgehook. They advise breaking down customer cohorts for analysis.

At Knowledgehook there are three key personas: the end user who uses the tool, the economic buyer who pays for it, and the technical decision maker. To help with pushing deals forward, they have individual storyboards for each.

Additionally, they have story cards for each team on customer success, so they know the journey for teachers and district leaders.

These storyboards and cards are helpful, but only illuminate what’s on the surface. They still double click into individuals to understand common bottlenecks in the customer experience.

 

3. Retention starts with onboarding

Next, Romain Pouillon of Beatport told us that retention starts with onboarding. Before retaining a customer, you have to instill the value that your product provides.

At first, retention will seem to be all over the map, but this is no cause to panic. Over time as you improve your product and match it to the needs of your customers, numbers will naturally start to normalize.

The best thing you can do upfront is shore up your onboarding. Check in with your team weekly and ensure that your tweaks, large or small, are affecting the numbers you are tracking.

 

4. Letting certain customers churn

Let’s take it back to our episode with Oscar Carlsson. Though it sounds counterintuitive, letting certain customers go is a good thing.

You want to focus your efforts and resources on those customers that are going to provide a higher lifetime value.

 

5. Have a cross-functional approach

And last, let’s look at our conversation with Kelly Danahy of CompanyCam. Kelly advised having a cross-functional approach, instead of leaving things up to customer success.

Aligning your retention strategy across sales, marketing, and even product, gives CompanyCam a holistic approach to ensuring customers succeed.

 


If you’d like more insight into your own retention—or even a free retention audit where we can benchmark you with actual relevant data—reach out to me at neel@profitwell.com.

 


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This is a ProfitWell Recur production—the first media network dedicated entirely to the SaaS and subscription space.

 

By Neel Desai

Product Lead, ProfitWell

Subscription market insights you won't find anywhere else.